Research Situation:

Housing loans are granted to PAG-IBIG members at very low interest

rates to help them build and own their own homes. The loan is expected
to be paid on a monthly basis within a certain period of time. Despite
the liberal repayment scheme, repayment rate has been consistently
low. Records show a delinquency rate of about 30%. Arrears average is
Php 80,000 and many properties have been foreclosed as documented
by notices of foreclosure. PAG-IBIG members’ failure to pay their
obligations has been attributed to many factors, like lack of awareness
among borrowers of the consequences of non-payment, a negative
attitude towards government loans, or shortage of cash because of other
financial needs and others. Two local studies on loan payment
behaviors of credit cooperative members showed that social and
economic factors influence repayment. The studies however, did not
touch on knowledge and attitudes towards loan repayment. Most of the
studies reviewed deal with credit coop loans and crop loans. Studies on
housing loans are limited.

1. What can be the possible research question?

The studies however, did not touch on knowledge and
attitudes towards loan repayment.
Studies on housing loans are limited.

2. What is the problem situation? Show evidences.

PAG-IBIG members’ failure to pay their obligations. Despite
the liberal repayment scheme, repayment rate has been
consistently low. Records show a delinquency rate of about
30%.
3. What should be the situation?
The loan is expected to be paid on a monthly basis within a
certain period of time
4. What are the possible reasons for discrepancy between what is
and what should be?
lack of awareness among borrowers of the consequences of
non-payment, a negative attitude towards government
loans, or shortage of cash because of other financial needs
and others
 5. What is already known about the problem? What are the findings
of related studies?
Two local studies on loan payment behaviors of credit
cooperative members showed that social and economic
factors influence repayment.
6. What questions remain unanswered?
Most of the studies reviewed deal with credit coop loans
and crop loans. Studies on housing loans are limited.

Workshop: Problem Identification & Definition

1. My research problem is:

a. The knowledge and attitudes of PAG-IBIG members towards
loan repayment.
b. Social and economic factors influencing housing loans
repayment
2. The condition which gave rise to my research question is the
current situation wherein PAG-IBIG members fail to pay their
obligations despite the liberal repayment scheme. This is reflected
by the consistently low repayment rate and a delinquency rate of
about 30%.

3. The ideal situation would have been PAG-IBIG members who

make a loan will be able to pay on a monthly basis within a agreed
period of time.
4. The possible reasons for the discrepancy between No. 2 and 3 are
lack of awareness among borrowers of the consequences of non-
payment, a negative attitude towards government loans, or
shortage of cash because of other financial needs and others.

5. The following interventions have been done to address the

problem, and the outcomes were:
*None*

6. The following facts/findings have been reported in related studies

about the problem. (Prepare a summary of findings of at least
three recent related studies) [Might require external research,
beyond given situation]
 Two local studies on loan payment behaviors of credit
cooperative members showed that social and economic
factors influence repayment.

7. The following questions about the problem, however, still remain
unanswered.
a. The knowledge and attitudes of PAG-IBIG members towards
loan repayment.
b. Social and economic factors influencing housing loans
repayment